Key Issues in the Business Environment of Hilton Hotel

BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment is the outside forces of the environment which affect an organisation
and the organisation depend on it for its sustainability and productivity. The forces which
constitute a business environment are: suppliers: competitors, government, media and
more. These factors have effect on the business even though they are outside the business
organisation. This report is based on the key issues occurring in business environment of
Hilton hotel. It is the largest hotel brand in the world and was founded on 31st May 1991. It
includes macro and micro issues in the business environment and the challenges faced while
carrying out these tasks.
TASK
Key macro issues in the business environment
A macro environment is an environment as a whole, it does not include a particular region
or area. It includes trends in gross domestic product, inflation, employment, spending, fiscal
policy and monetary policy. The key macro issues of Hilton hotel are discussed with a
strategic tool PESTEL.
Political Factors
Remaining stable in the political environment is the key to success of any organisation and is
implemented on hotel industry as well and should manage with the political issues from all
over the world. The main impact of these issues is on the travellers and tourist who visits
the country. It is the issue of consideration for the people who visits northern countries as
they have delicate political conditions. Reduction in number of tourists in UK is due to
danger of terrorism in the country and this place is known for the extremist religious
organisation of accommodation with adverse impact of Hilton hotel’s performance in the
market. The chances of UK to exit European unions (an issue raised by the British PM David
Cameron on several occasions may also have inverse impact on the revenues of the Hilton
Hotel that lead to decrease in the tourist in the nation.
Economic Factors
UK is a developed country and its economy is also highly developed which provides a
platform to enhance the productivity of the organisation. National macro environmental
factors, events and conditions are the major factors which affect the business of the Hilton
hotel. For example, during the Olympic games the rooms of hotels were fulled and as soon
as the Olympic games were over the rooms were vacant. So the situations were totally
different on the scenarios. The extension of expected and real economic growth in the
United Kingdom has a impact on Hilton Hotel. Moreover the rate of GDP exchange rate
against different countries and inflation rate has also had an impact on the performance of
the Hilton hotel.
Social Factors